Buhari acknowledges that Nigeria's falling share of African FDI is a major cause for concern

PRESIDENT Muhammadu Buhari has acknowledged that Nigeria's falling share of foreign direct investment (FDI) is a big concern with the country only attracting 4% of the entire capital invested in Africa between 2015 and 2019.

Speaking at a retreat organised by the Nigeria Extractive Industries Transparency Initiative (Neiti) in Uyo, the Akwa Ibom State capital, President Buhari described the situation as unacceptable. Despite having the biggest economy in Africa, Nigeria only received about $3bn of the $75bn invested in the continent in the first term of President Buhari’s administration.

According to the United Nations Conference on Trade and Development (Unctad) 2020 World Investment Report, FDI flows to Nigeria last year showed a 48.5% decrease compared with 2019. Nigeria has a poorly developed transport and energy infrastructure, resulting in high operating costs, an inefficient judicial system and unreliable dispute settlement mechanism as well as serious security concerns, which are all blamed for the fall.

According to the president, Neiti's work strongly aligned with the vision of his administration to provide a robust governance framework in the oil and gas and mining sectors and guarantees professionalism, transparency, accountability, good returns on investment, as well as improved revenue for the country. He urged the new board to provide the required leadership and strategic direction to channel similar attention it had shown in the oil and gas industry to the solid minerals sector.

President Buhari said: “The board of Neiti must articulate a new approach and seek productive collaborations, where necessary, to make Nigeria an investment destination and dramatically increase the quantum of investments to the country. It is unacceptable, a situation where only $3bn came to Nigeria out of the $75bn investment in the extractive industry that came into sub-Saharan Africa.”